Grid Strategy Comparison
Direct answer
The Strategy Comparison lines up arithmetic grids, geometric grids and a buy-and-hold baseline over the same history — final equity, return, fees and max drawdown on an equity curve; results are historical only.
The Strategy Comparison lines up arithmetic grids, geometric grids and a buy-and-hold baseline over the same history: final equity, return, fees and max drawdown, with an equity curve that makes the differences visible.
For dual-direction (neutral) strategies use the long-short grid calculator; this page answers whether your grid should be arithmetic or geometric — and whether it beats simply holding.
Grid Strategy Comparison
Result
All figures follow the assumptions on this page and are for reference only.
- Bars
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Scenarios / details
| Strategy | Trades | Fees (USDT) | Net (USDT) | Total return | Max DD | Final equity (USDT) |
|---|
Key data & facts
- Geometric levels
- Level(i) = Lower × ratio^i, ratio = (Upper / Lower)^(1/Grids)
- Arithmetic step
- (Upper − Lower) ÷ GridsA fixed step per level
- Buy & hold baseline
- all capital bought at the first close, held to the endNo fees
- Cash baseline
- stays fully in cash
What is the Grid Strategy Comparison?
Arithmetic grids keep a fixed price step; geometric grids keep a fixed ratio, producing denser levels and smaller absolute amounts at lower prices. Fills differ across the same market.
Putting both grid types next to a “do nothing” baseline answers whether oscillation income compensates for the risk of holding or missing out.
How to use it
- Pick the data source and enter the range, grid count, capital and fee.
- Click Calculate and compare final equity and drawdown across the four rows.
- Inspect the equity curve: is the grid smoother, or far behind the hold line?
- Add the long-short calculator for neutral strategies and decide holistically.
Notes
Level(i) = Lower × ratio^i, ratio = (Upper / Lower)^(1/Grids)
Arithmetic grids keep a fixed step (Upper − Lower) ÷ Grids instead.
Worked example
In a choppy sample, arithmetic or geometric grids may realize more than buy & hold with lower drawdown; in a one-way rally, buy & hold usually wins clearly.
The equity curve shows whether differences come from oscillation opportunities or trend dividends, helping you choose given your market view.
Practical tips
- Never drop the baselines. Without holding/cash, you cannot tell whether the grid earns from volatility or merely underperforms sitting still.
- Geometric suits wide ranges. The wider the upper/lower ratio, the more valuable its denser low-price levels; on narrow ranges the two are close.
FAQ
When do arithmetic and geometric grids diverge?
When the range spans multiples in price — geometric places denser levels at low prices with smaller absolute steps. On narrow ranges they are nearly identical.
Why include buy & hold?
It is the benchmark for the grid's relative value: if holding earned more on the same history, the parameter suits trends rather than choppy markets.
Do grids always lose to holding in trends?
In a one-way rally grids sell too early and usually trail. In declines grids buy in stages at lower average cost, so drawdown can be smaller than a full position.
Where do I test neutral grids?
This page focuses on long grids and baselines; use the Long-Short Grid Calculator for static dual-direction estimates.
Sources & references
- What Is Backtesting?Investopedia
- What Is the Sharpe Ratio?Investopedia